Sentinel's Parent In Bankruptcy Restructuring
Affiliated Media Inc., the Denver-based holding company for MediaNews Group, which owns the Fitchburg Sentinel & Enterprise newspaper, plans to file for Chapter 11 bankruptcy.
The company said the restructuring would not affect the operations of any of its 54 daily newspapers, its more than 100 non-daily papers or its web sites or television and radio broadcasters.
The restructuring will "sharply reduce" the company's $930 million in debt and boost cash flow, the company said.
The arrangement allows Affiliated's senior lenders to swap company debt for equity. The plan is expected to reduce the company's debt to $165 million. Company management will be permitted to own 20 percent of the company through stock and warrants.
Affiliated's creditors have already agreed to the plan, which allows the company to file a "prepackaged" restructuring plan.
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